2023 FSA, Transit, and Adoption Limits

2023 FSA Transit Adoption Limits

On October 18, 2022, the Internal Revenue Service (IRS) announced updated regulatory limits for FSA, Transit, and Adoption Assistance plans for 2023. These were included in IRS Revenue Procedure 2022-38.

2023 FSA Limit

The maximum annual contribution for Health FSAs will be $3,050 for the 2023 plan year, an increase from $2,850 in 2022.

There are no changes at this time to Dependent Care FSA limits, which remain $5,000 for married filing jointly or head of household and $2,500 for married filing separately.

2023 FSA Carryover Limit

As you may know, the annual FSA Carryover limit is indexed to the annual contribution limit at a rate of 20%. With the annual FSA limit increasing for 2023, the annual FSA Carryover limit is also increasing to $610. This compares to a Carryover limit of $570 in 2022.

2023 Commuter Limits

The qualified transportation fringe benefit and monthly qualified parking benefits are each increasing to $300 per month for the 2023 plan year. This compares to $280 per month in 2022.

2023 Adoption Assistance Limit

The annual limit for employer-sponsored Adoption Assistance will be $15,950 in 2023. This compares to $14,890 for 2022.

For more information, refer to IRS Revenue Procedure 2022-38.

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